Fayen v. Commissioner
United States Tax Court
In 1953 Carl F. Fayen, the sole trustee and life-income beneficiary of the Carl F. Fayen Trust, paid $ 4,664.37 into the principal of said trust in compromise of surcharge proceedings filed by the guardian ad litem for the remaindermen of the trust. Held, that petitioner is not engaged in carrying on a trade or business as trustee. His claim for deduction under section 23(a)(1)(A), I.R.C. 1939, is accordingly denied.
Read the full summary
In 1953 Carl F. Fayen, the sole trustee and life-income beneficiary of the Carl F. Fayen Trust, paid $ 4,664.37 into the principal of said trust in compromise of surcharge proceedings filed by the guardian ad litem for the remaindermen of the trust. Held, that petitioner is not engaged in carrying on a trade or business as trustee. His claim for deduction under section 23(a)(1)(A), I.R.C. 1939, is accordingly denied. Held, further, that said payment in settlement of the surcharge suit is not an expense incurred in the collection or production of income and hence not deductible under section…
1Opinion of the Court
Muuroney, Judge:
The respondent determined a deficiency in income tax against petitioners for the year 1953 in the amount of $1,366.10. Petitioner Carl F. Fayen was the trustee and life beneficiary of a trust and the only issue in the case is whether the amount of $4,664.37 which he paid into the principal of the trust, pursuant to a judicial settlement of a surcharge suit brought by remaindermen of the trust, is an allowable deduction under section 23(a) (1) (A) or section 23(a) (2), I.R.C. 1939.1
FINDINGS OF FACT.
The stipulated facts are found accordingly. Carl F. Fayen (hereinafter sometimes…
Also in this document: Dissent.
2Cases cited11 opinions
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- McDonald v. CommissionerSupreme Court of the United States · 1944
- Bingham v. CommissionerUnited States Tax Court · 1943
6 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Perkins v. CommissionerUnited States Tax Court · 1963
- Uhlenbrock v. CommissionerUnited States Tax Court · 1977
- Cummings v. CommissionerUnited States Tax Court · 1973
- Cummings v. CommissionerUnited States Tax Court · 1973
- Ditmars v. CommissionerUnited States Tax Court · 1961
4 more not listed; retrieve them via the Exa API.